An Introduction To Business Ethics 6Th Edition By Joseph DesJardins – Test Bank
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An Introduction to Business Ethics, 6e (DesJardins)
Chapter 3 Corporate Social Responsibility
1) The most influential theory of corporate responsibility of
the past century is:
A) the free society economic theory.
B) the neoclassical economic theory.
C) the social contract theory.
D) the stakeholder theory.
Answer: B
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2) In which of the following ideas are the ethical roots of the
economic model of corporate social responsibility found?
A) The interests of stakeholders are as important as the
interests of the corporation’s stockholders.
B) Managers are ethically obliged to make as much money as
possible for their stockholders because to do otherwise would undermine the
very foundations of our free society.
C) Managers must prioritize stakeholders’ interests if there is
a conflict between the interests of stockholders and the interests of employees,
consumers, suppliers, or society.
D) The actions of corporations can and should be restricted by
the rights of anyone affected by their decisions.
Answer: B
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3) The management of an online retailer is mostly interested in
implementing strategies and pushing policies that result in the utilization of
their stockholders’ property to serve the interests of its employees and the
local community. The defenders of which of the following models are likely to
consider these actions as theft?
A) The triple bottom line theory
B) The cyclical theory of social change
C) The stakeholder theory of corporate social responsibility
D) The economic model of corporate social responsibility
Answer: D
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4) Which of the following statements does not represent a market
failure, a situation in which the pursuit of profit will not result in a net
increase in consumer satisfaction?
A) The costs of pollution, groundwater contamination and
depletion, soil erosion, and nuclear waste disposal are borne by parties
external to the economic exchange between buyer and seller.
B) Where there is no mechanism for pricing, for setting a value
on public goods, there is no guarantee that the markets will result in the
optimal satisfaction of the public interest in regard to public goods.
C) Situations in which externalities have been internalized
result in an equilibrium in the exchange price between true costs and benefits.
D) The pursuit of individual self-interest results in a worse
outcome than would have occurred had the behavior of the parties involved in
the economic exchange been coordinated through cooperation or regulation rather
than mere competition.
Answer: C
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5) Which statement does not support the claim that an
unconditioned ethical directive such as the one the economic model of corporate
social responsibility demands of business management is inappropriate for
utilitarian theory?
A) Markets can work to prevent harm only by first-hand
experience with harms that have to occur before they can be remedied.
B) It is claimed that once market failures are adequately
addressed by the government, business just needs to obey the law that addressed
them. Business, however, has the ability to inappropriately influence
government policy and the law.
C) Business has the ability to influence consumers’ desires by
helping shape those desires through advertising.
D) A more precise formulation of a utilitarian-based principle would
be to maximize profit whenever doing so produces the greatest good for the
greatest number, with the proviso that managers must consider the impact a
decision will have in many ways other than merely financial.
Answer: D
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6) According to the private property defense of the economic
model of corporate social responsibility, managers who use corporate funds for
projects that are not directly devoted to maximizing profits are stealing from
their owners. Which statement supports this view?
A) Property rights are restricted when they conflict with the
basic rules of society as embodied in law and custom.
B) The connection between ownership and control that exist for
personal property does not legally exist for corporate property.
C) Investors buy their stocks with the hope of maximizing return
on their investment.
D) Stockholders in publicly traded corporations are better
understood as investors rather than owners.
Answer: C
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7) Which statement is true of Bowie’s Kantian approach to
business ethics?
A) People have a duty both to not cause harm and to prevent
harm.
B) Both causing no harm and preventing harm override other
ethical considerations.
C) While it is ethically good for managers to prevent harm or do
some good, their duty to stockholders overrides these concerns.
D) A narrow interpretation of Bowie’s “cause no harm” imperative
makes the duties faced by management under the neoclassical model significantly
different from the economic model.
Answer: C
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8) Which statement represents a challenge to Evan and Freeman’s
defense of the stakeholder theory against the economic model of corporate
social responsibility?
A) The law now recognizes a wide range of managerial obligations
to such stakeholders as consumers, employees, competitors, the environment, and
the disabled.
B) Courts and legislatures have recognized that the rights and
interests of various constituencies affected by corporate decisions limit
managers’ fiduciary responsibility.
C) The stakeholder theory cannot answer the question as to how,
exactly, a manager should go about balancing the diverse and competing claims
of all parties.
D) There is no guarantee that when managers produce profits,
they will serve the interests of either stockholders or the public.
Answer: C
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9) Which of the following statements is true of the stakeholder
model of corporate social responsibility?
A) It is based on the premise that a business is a private
property, and like any private property, the owners get to decide what to do
with it.
B) It appeals to such important ethical norms as utilitarianism
and freedom because of its connection to the free enterprise system.
C) It assumes that compliance with the law is sufficient for
being an ethically responsible business.
D) It begins with the insight that every business decision
affects a wide variety of people, benefiting some and imposing costs on others.
Answer: D
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10) The free market, or neoclassical, theory of corporate social
responsibility relies on utilitarianism and the concepts of individual rights
to freedom and property for its ethical justification.
Answer: TRUE
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11) To use a company’s resources for a project that does not
contribute to maximizing profits is sometimes acceptable and even sometimes
required under the economic model of corporate social responsibility.
Answer: FALSE
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12) If the costs of externalities like air pollution, ground
water contamination and depletion, soil erosion, and nuclear waste disposal are
borne by parties who are not involved in the exchange between buyer and seller,
the exchange price does not represent an equilibrium between true costs and
benefits.
Answer: TRUE
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13) There is no reason to believe that ad hoc attempts to repair
market failures, such as determining shadow prices for unpriced social goods,
or exempting social goods from the market, or using the law to address social
goods that are unattainable through individual choice, are socially inadequate.
Answer: FALSE
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14) According to the private property defense of the economic
model of corporate social responsibility, any use of a corporation’s resources
for any purpose other than maximizing profits is a violation of the owners’
property rights and amounts to theft.
Answer: TRUE
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15) Bowie’s Kantian model of corporate social responsibility
obliges managers to do no harm, but they must also be prepared at times to do
some good or prevent some harm.
Answer: FALSE
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16) The stakeholder theory of corporate social responsibility is
totally incompatible with the utilitarian ethical theory because the
stakeholder concept requires balancing the interests of all the parties
affected by business decisions.
Answer: FALSE
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17) A wider interpretation of the meaning of a stakeholder as
any affected party places an impossible burden on managers who would have to
account for everyone who might be affected by a business decision.
Answer: TRUE
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18) The free market theory provides the rationale for the
responsibility of managers to make as much money for their stockholders as
possible.
Answer: TRUE
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19) The significance of the moral minimum approach lies in its
recognition that compliance with the law is insufficient for being an ethically
responsible business.
Answer: TRUE
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20) Market failures occur in a variety of situations in which
the pursuit of profit will not result in a net increase in consumer
satisfaction because in these situations markets fail to do what they were
designed to do.
Answer: TRUE
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21) Prisoners’ dilemma cases are examples of situations in which
cooperation does not have a more optimal outcome than competition.
Answer: FALSE
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22) We learn about market failures and thereby prevent harms in
the future only by sacrificing the first generation as a means for gaining this
information.
Answer: TRUE
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23) Milton Friedman did not recognize that there are limits to
the pursuit of profits.
Answer: FALSE
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24) The pursuit of profit is the mechanism by which a business
is thought to serve the utilitarian goal of satisfying consumer demand, thereby
maximizing the overall good.
Answer: TRUE
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25) Utilitarian ethics directs us to maximize happiness.
Answer: TRUE
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26) Efficient markets guarantee that an ethically worthy outcome
has been achieved.
Answer: FALSE
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An Introduction to Business Ethics, 6e (DesJardins)
Chapter 5 The Meaning and Value of Work
1) Select the statement that does not represent one of the
common aspects of the contemporary work scene.
A) Workers have significant choices and alternatives open to
them in the workplace.
B) More jobs today are temporary, part-time, or subcontracted
out to third parties.
C) Most workers will likely have no more than one or two jobs in
a lifetime.
D) The social values of work, such as camaraderie and social
status, are lost to part-time and temporary workers.
Answer: C
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2) Which of the following statements is a classical
interpretation of work?
A) Humans are intellectual, yet work is physical.
B) For cultured and civilized people, work is undignified.
C) Humans are free beings; work is a necessity.
D) Work diminishes human nature and human potential.
E) All of the answers are correct.
F) None of the answers are correct.
Answer: E
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3) Which of these statements does not describe the hedonistic
interpretation of work?
A) Work is the price we pay to get the necessities of life and
other things that make life pleasurable.
B) Happiness is the enjoyment of cultural activities.
C) There is no specific content for human happiness.
D) Individuals are allowed to choose whatever ends they desire.
Answer: B
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4) Which of the following statements is not true about the issues
confronting business ethics?
A) Not every job contributes to the development of human
potential.
B) The proper kind of workplace contributes to human
development.
C) Jobs do not have the potential for influencing and shaping
individuals.
D) Individuals exercise control over jobs.
Answer: C
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5) Which of the following is a true expression of Marx’s concept
of alienation?
A) Alienation is the result of low wages.
B) Alienation is the result of work that prevents the full
development of human potential.
C) Alienation means the separation and distinction of one social
class from another.
D) The capitalistic system does not inevitably mean a life of
alienation for workers.
Answer: B
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6) Select the statement that describes the human potentials that
work can fulfill.
A) Work provides the occasion for developing talents and
exercising creativity.
B) Through work, humans create their own society and culture and
thereby their own identities.
C) Work expresses our nature as social beings.
D) Work allows us to experience our freedom and autonomy in
making choices and directing our lives.
E) All of the answers are correct.
F) None of the answers are correct.
Answer: E
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7) Indicate the statement that is not consistent with Bowie’s
liberal theory of work.
A) One of the moral obligations of a firm is to provide
meaningful work.
B) It is a simple enough task to find a justification for any
objective, normative definition of meaningful work.
C) Meaningful work defined as nothing more than what employees
say it is, is a subjective and individualistic definition of work.
D) The more people are compelled to work, the greater the
responsibility to make sure that workplace conditions are as humane as
possible.
Answer: B
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8) How might a liberal have to respond to the suggestion that
some workers might prefer to work at highly routine, unchallenging, and boring
jobs?
A) Employers have no choice but to eliminate these jobs.
B) Employers have no obligation to eliminate these jobs.
C) These jobs do not necessarily suppress the human faculties of
rational and autonomous choice.
D) While it may be true, on the one hand, that as long as no one
is forcing employees to do these jobs, employers don’t have to eliminate them,
it is also true that accepting the ethical legitimacy of these jobs violates
the fundamental values of rational and free choice.
Answer: D
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9) In the context of the meaning of work, which of the following
statements is true?
A) Work means activities that involve perseverance, discipline,
toil, usually performed with a degree of seriousness and concentration.
B) The meaning of work is likened with being idle, relaxing,
playing, and activities such as reading a book or playing a round of golf.
C) Work does not include any task, accomplishment, or
undertaking unless it generates an income.
D) An activity is not regarded as work unless the worker’s
identity and the activity are “morally inseparable.”
Answer: A
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10) Identify a true statement regarding a job.
A) A job is a role that one steps into and out of as a means for
earning money.
B) A jobs refers to a tradition of work in which a person’s
identity and activities are “morally inseparable.”
C) A job involves developing relationship between the self and
the activity.
D) A job enables the evolution of social status and self-esteem
in ways that a career does not.
Answer: A
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11) The value of housework and child care have systematically
been undervalued by social programs such as Social Security, unemployment
insurance, and many public policies concerned with marriage and divorce.
Answer: TRUE
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12) A job might be described simply as work in which
self-identity and the activity are independent of each other.
Answer: TRUE
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13) It is its potential to be intimately connected to our
deepest values that makes the meaning and value of work have important
implications for the structure and operation of the workplace.
Answer: TRUE
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14) According to the classical interpretation of work, happiness
is simply getting whatever one wants.
Answer: FALSE
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15) The human fulfillment model of work believes that work is
the primary means for developing human potential.
Answer: TRUE
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16) According to the human fulfillment model, the psychological
and social benefits of work do not reduce to merely subjective and personal
values.
Answer: TRUE
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17) Karl Marx was sure that industrial capitalism inevitably,
necessarily, alienates workers from the product of their work, from the
creative process of work, and from their very essence as social creatures.
Answer: TRUE
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18) Both liberals who believe that the ethical assessment of
work should be based on how work affects the workers’ ability to make free and
autonomous decisions about their lives and the human fulfillment school that
makes that judgment on the basis of what makes a good meaningful human life are
saying essentially the same thing.
Answer: FALSE
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19) The idea that the meaning and value of work is whatever the
workers determine that it is simply doesn’t challenge in any significant way
Bowie’s contention that employers have an obligation to provide meaningful
work.
Answer: FALSE
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20) Primary goods are those goods that are necessary in order to
achieve whatever other goods an individual chooses to pursue.
Answer: TRUE
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21) To the degree that work can be intellectual, leisurely, and
free, it can be meaningful; employment and wage labor are as likely to attain
these conditions.
Answer: FALSE
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22) Social conditions of routine, unchallenging, boring jobs
tend to suppress the human faculties of rational and autonomous choice.
Answer: TRUE
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23) The critics of work-life balance practices believe that work
can be a central part of an individual’s identity and it can have significant
benefits for people.
Answer: TRUE
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24) The Greek philosopher Aristotle disparaged work because of
its very necessary, and therefore slavish, nature.
Answer: TRUE
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